With 'Uninspiring' iPhone Sales, Apple Eyes Software as its Next Cash Cow

▤ Summary

That sentiment is shared by other analysts, who point to less-than-earth-shattering demand for the iPhone X, Apples premium phone offering at $1000 and up, as a reason for pause."We also look for more color around Apples thinking on price elasticity at the high end, though it is unlikely the company changes its generally positive tune there," they wrote.And its also been racking up content deals as part of an rumored media streaming bundle, having inked a production mega-deal with Oprah Winfrey last month.Compared to its hardware business, its a more profitable segment with margins of around 50%, according to GBH analyst Daniel Ives."Content strategy could represent a key growth vehicle for further monetizing the all-important software/services, which we believe is key to Apples growth prospects (and expanded multiple) over the coming years," wrote GBHs Daniel Ives in a June note.

▦ Linked Companies

Apple Inc.

$1B+